• 5 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 7 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 12 mins Most ridiculous green proposal
  • 2 hours Rethinking election outcomes for oil.
  • 11 hours China Sets Its Sights On Global [EV, AI, CRISPR, Fusion, Navel Lint Collector] Dominance
  • 2 hours Video Evidence that the CCP controls Joe Biden
  • 23 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 3 hours The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 8 hours P@A will cost Texas Taxpayers $117 Billion.
  • 7 hours Republicans Have Become the Party of Hate
  • 2 days Even Obama can't muster a crowd to support Biden.
  • 8 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 1 day WallStreet Journal editorial " . . Big Tech-Media are the propaganda arm of Democrat Party leading to one party autocratic rule. " This is the State of the Union.
  • 2 days America's Frontline Doctors - Safely Start Living Again!
  • 2 days Saudi Oil Minister Abdulaziz said getting rid of oil "Far Fetched and Unrealistic". . True. . . but
  • 23 hours Permian in for Prosperous and Bright Future
  • 1 day Clean Energy Is Canceling Gas Plants
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Russia Gets Foothold In The World’s Hottest NatGas Discovery

Chinese E&P major Sinopec reportedly put its Argentina assets up for a $1 billion sale this week. With one of the interested buyers said to be Russia’s Rosneft. 

And that latter firm made ever bigger waves in the global natural gas industry this week. With the purchase of a stake in one of the largest — and most geopolitically complicated — development projects in the world. 

That’s the Zohr natgas field, offshore Egypt. A find made by Italian major Eni — which holds a massive reserve of 30 trillion cubic feet of natural gas. 

Eni announced this week it is selling a 30 percent interest in Zohr to Rosneft. With the Russian firm paying $1.125 billion for the stake, and reimbursing Eni for a proportionate share of historic costs. 

That will now give Rosneft a foothold in one of the world’s most important emerging natgas areas: the eastern Mediterranean. A place where recent massive discoveries in Egypt and Israel, and high-profile exploration activity in places like Cyprus, have brought the region to the forefront of the global energy scene. 

Taking a role in this emerging hotspot is exactly what Rosneft is looking for. With the company’s CEO Igor Sechin noting he expects the deal to “strengthen positions of Rosneft in the strategic markets of Europe and Middle East”. Related: Oil Giants At Odds As Saudi, Russian Ties Improve

Gaining influence in this key region would continue a major expansionary campaign by Rosneft of late. With the major also having expanded into India, and forged business ties with China over the last few months. 

All of which shows that the firm — and perhaps Russia in general — is intent on playing a larger role in the global energy order. And even new U.S. sanctions aren’t deterring them, with the 30 percent Zohr stake coming in under the 33 percent ownership threshold that might trigger trade action. 

Watch for more deals coming from Rosneft (perhaps on the Sinopec Argentina assets) — which would cement the company as one of the biggest driving forces in the oil and gas world right now. 

Here’s to going all in.

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News